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ATTACHMENT
CUTTING RED TAPE - NEW APPRENTICESHIPS BUSINESS INCENTIVES
SIMPLIFIED
The New Apprenticeships Incentives Programme provides financial
incentives to employers who take on and train New Apprentices
(apprentices and trainees). Payments are made when a New Apprentice
commences his or her training and when they complete and, at the
current time at a progression point for the higher level
qualifications (AQF 3 and AQF 4). From 1 July 2003, the Programme
will be simplified along the following lines (NB all payments are
inclusive of GST).
- The progression payment will be discontinued with 20% of the
payment to be redistributed to commencement and 80% to be
redistributed to completion. The revised payments are:
| |
commencement |
completion |
| AQF level 2 |
$1,375 |
nil |
| AQF levels 3
and 4 |
$1,650 |
$2,750 |
The rural and regional skill shortages incentive ($1,100) will
be paid as a commencement payment for AQF III and IV, rather than
at progression.
Group Training Organisations will be placed on an equal
footing with other employers. The special commencement incentive
for trainees will cease and Group Training Organisations will be
eligible for the same recommencement and completion incentives as
other employers. (Not for profit Group Training Organisations
currently receive a recommencement payment of $550, while other
employers receive $825. Not for profit Group Training
Organisations do not currently receive the standard completion
incentives.) There will be a two year transition period with the
trainee commencement incentive ($1,100) remaining in place for the
first year (2003-04) and will be paid at half the rate ($550) in
2004-05.
In addition, Group Training Organisations will attract an
additional incentive of $1,100 from 2004-05 for New Apprentices
who complete a qualification at the AQF 2 level. This recognises
the special role that Group Training Organisations play in
supporting New Apprentices, particularly those that are
disadvantaged.
The incentive for women in non-traditional occupations
($1,100) will be retained but the Department will work with the
Office of the Status of Women to explore avenues to promote
opportunities for women in non-traditional occupations.
The Disabled Apprentice Wage Support will be extended to all
New Apprentices (it is currently available for apprentices but not
trainees).
The rate of the Living Away from Home Allowance will be
increased to $77.17 per week in line with increases to the
National Training Wage. It will also be extended to the second
year of the New Apprenticeship at half the rate ($38.59) of the
first year.
There will be an additional incentive for disadvantaged mature
aged workers (over 45) who are welfare dependent, those returning
to the workforce or those made redundant. An $825 commencement
payment will be made as well as an $825 completion payment.
The requirements for New Apprentices with prior qualifications
will be relaxed. Any VET qualification that is more than 7 years
old will not disqualify their employer from receiving incentive
payments. In addition, any qualification that is obtained while a
person is still at school will be disregarded for incentives
purposes, provided it is for either a different or higher
qualification.
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